STATE BANK OF INDIA Vs. KASINAGAR JUTE MILL PVT LTD

JUDGEMENT

(1.) THE application preferred under Sub-section (1) of Section 31-A of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993. (Act No. LI of 1993) on Wednesday, June 21, 2004 before this Tribunal has been taken up for its consideration. In the said application the applicant Bank is praying for a Certificate of Recovery of a sum of Rs. 25,54,999.00 calculated upto June 24, 2004 against the number of 12 (twelve) defendants including the substituted defendants.

(2.) Before passing the appropriate order under Sub-section (2) of Section 31-A of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993. (Act No. LI of 1993), this Tribunal needs to mention the factual background responsible for rise of such application in short. Those defendants have been sued by the applicant Bank before the Court of the learned Civil Judge (Senior Division) Paralakhemundi, District Gajapati, in the year 1996. The said suit has been contested by those defendants; and in the said suit as many as five issues have been framed by the said learned Court.

(3.) BOTH in terms of Rule 3(a) of Order 41 as well as Sub-rule (5) of Rule 5 of Order 41 of the First Schedule to the Code of Civil Procedure, 1908 (Act No. V of 1908) as the appellant-defendants have not deposited a portion or the entire decretal amount before the said appellate Court nor there has been issued and passed any ad interim stay, staying judgment, order and decree drawn, there has nothing been found any impediment in issuing any Certificate of Recovery under Sub-section (2) of Section 31-A of the said Act. It is being held in the background of the above factual situation that the scope of natural justice has been narrowed down or reduced to an almost 'nil' position in respect of Section 31-A application; moreover, the defendants (hereinafter referred to as the intended certificate-debtors) have factually the constructive knowledge as to the determined liability which may be crystallised and evident through the appeal so preferred, though in a belated manner, by those defendants.